Every year in Spain thousands of convictions for embezzlement are handed down. According to official conviction statistics, this offense accounts for approximately 1.2% of total criminal convictions, with figures hovering around 4,000–5,000 annual convictions.
Within this group, there is a very specific profile that repeats itself: administrators, advisors, consultants, managers or liberal professionals who have received a provision of funds and are subsequently reported because the client believes the money «has disappeared» or that the engagement was not fulfilled.
If you have been charged with embezzlement involving provision of funds, you probably think this is a civil matter or a fee dispute, not a criminal offense. And in many cases, that’s correct. The key lies in how that money was delivered and for what purpose.
What is the crime of embezzlement involving provision of funds?
The crime of embezzlement is regulated in article 253 of the Criminal Code and punishes whoever, to the detriment of another, appropriates or diverts money or property that they have legitimately received, but
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Typical situations in which you are accused of embezzlement involving provision of funds
When we talk about embezzlement involving provision of funds, it almost never appears suddenly. It usually arises from a professional relationship that ends badly: unmet expectations, poor communication, and the client’s feeling that «the money has vanished.» These are the scenarios that most often end in charges.
Money delivered «to handle procedures» that are never completed
Picture the scene: the client gives you a significant amount «to process everything.» They are left with the idea that you have received money to pay for specific things, although it was never properly itemized:
- Administrative or judicial fees.
- Notary and Commercial Registry.
- Tariffs, certificates, reports or procedures before public agencies.
Time passes, the matter doesn’t turn out as expected or simply doesn’t happen, and the client starts asking questions:
- «Were the fees actually paid?»
- «Why hasn’t the company been registered if I paid for everything?»
- «Where is the money I gave for the procedures?»
If there is no clear breakdown of what part of the provision of funds were fees and what part was allocated to specific expenses, the client can present the situation as if you had received third-party money for a specific purpose… and kept it for yourself.
That’s where the civil conflict over poor execution, delays or breach of contract attempts to transform into criminal liability.
The danger of ambiguity: when what wasn’t written works against you
Many charges arise not so much from what was done, but from what wasn’t made clear:
- Engagements closed «verbally.»
- Provision of funds without detailed description.
- Invoices with generic descriptions («various procedures,» «complete processing,» «professional services»).
This lack of precision allows the narrative in criminal proceedings to oscillate between two versions:
From the client’s side, the argument is usually something like:
«I gave him the money to pay the notary, registry and other procedures, and nothing was done. That money wasn’t his, it was to pay for things.»
From your side, the perception is very different:
«What was agreed was a global amount as fees for the engagement, and I started working; the fact that the matter didn’t reach a successful conclusion, or was cancelled, doesn’t turn that agreement into a crime.»
The evidentiary framework then revolves around a decisive question:
Was that money an advance on fees, or was it third-party money allocated to a specific purpose and pending destination?
If it is concluded that the money functioned as advance payment for a professional service, we will be dealing with a conflict of civil nature, however intense it may be.
If it is proven that the provision of funds was clearly intended to pay third parties or specific procedures and none of that was done, the prosecution
Abogado penalista en Madrid (Graduado en Derecho y ADE con Máster de Acceso a la Abogacía), experto en procedimientos complejos y técnicos en Derecho Penal. Cuenta con títulos como el Curso de DerechoPenal Avanzado impartido por magistrados del Tribunal Supremo en el Iltre. Colegio de Abogacía de Madrid.